FBT Record Keeping Exemption Threshold

The Fringe Benefits Tax exemption thresholds for the purposes of section 135C of the Fringe Benefits Tax Assessment Act 1986.

Section 132(1) provides that relevant records must be kept for up to 5 years after the completion of the transactions or acts to which they relate.

A record-keeping exemption is available for lower-value FBT benefits (with some limitations), and the FBT liability is accordingly be calculated using the value determined in an earlier “base year”, which is a year in which all the record-keeping requirements have been met.

The qualifying lower-value of FBT benefits is referred to as the exemption threshold. It is a value specified pursuant to section 135C and adjusted for inflation (according to the All Groups Consumer Price Index to 31 December) each year.